NCJ Number
67399
Date Published
1979
Length
26 pages
Annotation
FINDINGS AND RECOMMENDATIONS ARE REPORTED FROM THE GENERAL ACCOUNTING OFFICE EVALUATION OF THE GENERAL SERVICES ADMINISTRATION'S (GSA) MANAGEMENT OF THE COLUMBIA PLAZA BUILDING LEASE.
Abstract
BECAUSE GSA WAS LAX IN MANAGING ITS LEASE FOR OFFICE SPACE IN THE COLUMBIA PLAZA BUILDING IN WASHINGTON, D.C., UNNECESSARY PROBLEMS AROSE AND ABOUT $16.7 MILLION IN EXTRA COSTS WERE INCURRED. UNNECESSARY COSTS WERE INCURRED FROM THE PAYMENT OF RENT BEFORE THE BUILDING WAS OCCUPIED, ALTERATION OF SPACE FOR OCCUPANCY BY THE CUSTOMS SERVICE AFTER CUSTOMS HAD ALREADY DECIDED TO LOCATE ELSEWHERE, AND FAILURE TO OBTAIN TIMELY CLARIFICATION OF GOVERNMENT RIGHTS WHEN BUILDING OWVERSHIP CHANGED AND THE RENT WAS INCREASED. COSTS ALSO AROSE FROM BUILDING MAINTENANCE PAYMENTS WHICH SHOULD HAVE BEEN PAID THE LESSOR, UTILITY PAYMENTS FOR THE BUILDING'S COMMERCIAL GARAGE, AND PAYMENTS FOR RENT FOR MORE USABLE SPACE THAN IS APPARENTLY AVAILABLE. GSA SHOULD RESOLVE THE ISSUE OF WHETHER THE LESSOR OR THE GOVERNMENT IS RESPONSIBLE FOR MAINTAINING THE STRUCTURAL INTEGRITY OF THE BUILDING. GOVERNMENT PAYMENTS FOR REPAIRS AND MAINTENANCE SHOULD BE DEDUCTED FROM FUTURE RENT PAYMENTS AS AUTHORIZED BY THE 'FAILURE IN PERFORMANCE' CLAUSE OF THE LEASE. SEPARATE METERING SHOULD BE PROVIDED FOR UTILITIES USED BY THE COMMERCIAL GARAGE, AND REIMBURSEMENT SHOULD BE OBTAINED FOR UTILITIES CONSUMED AT GOVERNMENT EXPENSE SINCE 1974. THE EXACT AMOUNT OF USABLE SQUARE FEET IN THE BUILDING SHOULD BE DETERMINED TO SEE IF IT AGREES WITH THE AMOUNT OF SPACE SPECIFIED IN THE LEASE. IF THE SPACE IS LESS THAN THE LEASE INDICATES, FUTURE RENT PAYMENTS SHOULD BE ADJUSTED ACCORDINGLY, AND PAST OVERPAYMENTS SHOULD BE RECOVERED. ALL REIMBURSEMENTS SHOULD INCLUDE INTEREST. FINANCIAL DATA ARE APPENDED. (AUTHOR ABSTRACT MODIFIED--RCB)